Fishersville development put on hold

A Fishersville development that would include almost 900 rental apartment units, townhouses and senior units has been put on hold by the developer because of the shaky economy and Augusta County’s ordinance review, a company official said Wednesday.
Acquiring financing for the project is difficult in current market conditions, said Todd Dofflemyer, partner and vice president of development for Cathcart Properties in Charlottesville.
“Based on the current economy, we are re-evaluating the economics of the deal,’’ Dofflemyer said.
The project would have been developed on 120 acres off U.S. 250 from the new Route 636 to Mule Academy Road.
Plans call for 678 apartments, condominiums and townhomes and 200 independent and assisted living units for seniors.
There also would be plans for 250,000 square feet of general business space.
Several years ago, finances or the ability to sell units would not have been a concern, Dofflemyer said.
Housing sales in the second quarter of this year plunged by 30 percent in Greater Augusta compared to the same period last year. Sales statewide fell 13 percent over those periods.
The slump is more of a correction based on a previous hot housing market than a sign of a permanent downturn, said Ted Koebel, a professor of urban affairs and planning at Virginia Tech.
“We are suffering the effects of a bubble in the housing market bursting,’’ Koebel said.
Koebel said some home buyers purchased homes expecting the price to go up in a year rather than buying what they could afford.
Still, even when sales recover, there will be a lag in new home construction, Koebel said.
As for big developments such as Cathcart’s, Koebel said there is caution now “unless the developer has very deep pockets or is in a market where no one else is providing what you are providing.”
Also, as Augusta County prepares to review its zoning, subdivision and stormwater ordinances, Dofflemyer said his company would pay close attention.
“The ordinance review has an impact on the density of the project,’’ he said.
Senior Augusta County Planner Becky Earhart said changes in the zoning ordinance would affect density.
But Cathcart remains excited about the location, in part because of its proximity to Augusta Medical Center and because of the migration of people to Augusta County, Dofflemyer said.
Dofflemyer said the extension of Route 636 and other infrastructure improvements for the development would cost about $5 million.
Augusta County officials say they have discussed a traffic study for the development with Cathcart, but have not received an application.
“We have had preliminary discussions,’’ Earhart said.